The U.S. investment firm KPS Capital Partners is set to take control of MM Packaging, the packaging division of the Austrian Mayr-Melnhof Group (MM Group). The two parties have signed an agreement for the acquisition of 70% of the equity, based on a valuation of 2.4 billion euros, including debt. MM Group will retain the remaining 30%.
Seven French sites are affected
This transaction, which involves the manufacture of folding cartons, labels, and package inserts primarily for the food, pharmaceutical, cosmetics, and household products, has 2025 revenue of 2.4 billion euros and adjusted EBITDA of 260 million euros. Europe accounts for 72% of MM Packaging?s sales, compared with 18% for the Americas and 10% for the rest of the world.
Based in Vienna, Austria, MM Packaging operates 52 production facilities in 19 countries and employs approximately 8,500 people.
The sale involves the Food & Premium Packaging divisions?excluding operations in Iran and Tunisia?and the Pharma & Healthcare Packaging division.
In France, this affects MM Packaging?s seven sites: MM Packaging France in Monéteau, in the Yonne department; MMP Packetis in Chazelles, L?Isle-d?Espagnac, and Soyaux, in the Charente department, as well as in Valréas, in the Vaucluse department; MMP Premium in Ancenis-Saint-Géréon, in the Loire-Atlantique department, and in Saint-Hilaire-du-Harcouët, in the Manche department. Consultations with employee representatives are planned.
MM Group Retains Its Paper and Cardboard Operations
This sale marks a separation between the two major industrial divisions of MM Group. Following the sale, MM Group will focus its operations on the production of flatboard and paper, with six paper and board production plants as well as a mechanical pulp manufacturing facility. This division, the Board & Paper division, generated revenue of 1.93 billion euros in 2025.
For its part, MM Packaging will continue to operate under its current name, as an independent entity.
The two entities will nevertheless maintain business relations. A long-term supply contract provides, in particular, for MM Group to supply flat cardboard to MM Packaging's plants.
The Austrian manufacturer is expected to generate between 1.8 and 1.9 billion euros in cash following this transaction. These funds will be used to reduce its debt and finance future investments, and MM Group is also considering a special dividend of 500 to 600 million euros to its shareholders.
For KPS Capital Partners, which manages approximately $19.1 billion in assets, this acquisition strengthens its investments in the packaging processing and manufacturing industries.
The transaction is expected to close in the first half of 2027, subject to the necessary regulatory approvals and labor consultations.
